- SVB Financial has decided to file Chapter 11 in the Court for the Southern District of New York
- The group reported about $2.2 billion in liquidity in the filing.
On the one hand, Bitcoin (BTC) and other cryptocurrencies begin to flourish in the market. On the other hand, the picture is quite the opposite when it comes to the traditional banking system in the United States. Amid the collapse of the banking system, SVB Financial Group has announced that it will initiate bankruptcy proceedings.
According to SVB, this is being done to “maintain value”.
Reading Bitcoin (BTC) Price Prediction 2023-24
especially, Press release clarified that the group no longer belongs Silicon Valley Bankwas attached to cryptographic entitiesThis is because failed banking transactions are regulated by the Federal Deposit Insurance Corporation (FDIC). Due to this, the bank will not participate in the bankruptcy process of the financial group.
The Chapter 11 filing was filed in the United States Bankruptcy Court for the Southern District of New York. In a press release, the firm also stated that the funds and general partner entities of SVB Securities and SVB Capital are not included in this filing as they are legally separate from the group.
As for its current financial position, the group said that its current liquidity is around $2.2 billion. it was added,
“In addition to cash and its interests in SVB Capital and SVB Securities, SVB Financial Group has other valuable investment securities accounts and other assets, for which it is also exploring strategic alternatives. SVB Financial Group’s funded debt is approximately $3.3 billion in aggregate principal amount of unsecured notes.
Bitcoin and the crypto market rise
While the traditional financial system is in utter chaos, Bitcoin (BTC) and other cryptocurrencies are breaking new barriers With each passing day. King Coin broke through the $27,000 level earlier today. At press time, bitcoin was trading at $26,447, according to CoinMarketCap, registering an increase of more than 6% in the last 24 hours. Furthermore, its 7-day exchange showed that the real currency had increased in value by more than 33%.
Other top cryptocurrencies such as Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), and Polygon (MATIC) have also posted double-digit gains over the past week. Altcoins have been on an upward trend ever since notable influencers expressed that crypto could be a safe option During the current banking crisis.